Client business risk relating to cash may arise from:
A) cash being more susceptible to theft than other types of investments.
B) inappropriate cash management policies.
C) handling of funds held in trust for others.
D) all of the above

Question

Quizplus · Accepted Answer

Cash is more susceptible to theft than other types of investments, which increases the risk for clients' businesses. Inappropriate cash management policies can also lead to the mismanagement of a client's cash, resulting in financial losses or missed opportunities. Lastly, if a client holds funds in trust for other parties, the handling of these funds could result in additional risks and liabilities. Therefore, all of the above options may contribute to a client business risk relating to cash.

Client Business Risk Relating to Cash May Arise From